Yahoo Finance MercadoLibre (MELI) Stock Moves -0.45%: What You Should Know
In the latest trading session, MercadoLibre (MELI) closed at $1,363.83, marking a -0.45% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.46%. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq decreased by 0.64%.
The the stock of operator of an online marketplace and payments system in Latin America has fallen by 10.03% in the past month, lagging the Retail-Wholesale sector's loss of 3.05% and the S&P 500's loss of 3.04%.
The upcoming earnings release of MercadoLibre will be of great interest to investors. The company is predicted to post an EPS of $6.64, indicating a 67.25% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $3.94 billion, indicating a 29.87% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $34.46 per share and revenue of $17.7 billion, indicating changes of +77.08% and +22.27%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for MercadoLibre. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.44% lower within the past month. MercadoLibre is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, MercadoLibre is presently trading at a Forward P/E ratio of 39.75. This signifies a premium in comparison to the average Forward P/E of 21.16 for its industry.
It is also worth noting that MELI currently has a PEG ratio of 0.91. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 0.65 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 38, finds itself in the top 16% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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MercadoLibre, Inc. (MELI) : Free Stock Analysis Report
